Suhanee Project-2

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INSTITUTE OF MANAGEMENT AND SCIENCES
University Of Jammu
Session 2017-2020
A PROJECT REPORT ON
“A STUDY ON FINANCING OF RETAI LOANS AND CUSTOMER

SATISFACTION ON THE LOANS PROVIDED BY THE J&K BANK”
SUBMITTED BY
SUHANEE PANDITA
BBA 6th SEM
UNDER THE GUIDANCE OF
PROJECT SUPERVISOR PROJECT GUIDE

Mr. VIBHANKAR KHAJURIA Dr. MEENAKSHI SHARMA
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ACKNOWLEDGEMENT
No piece of work in this world is possible without people coming together heading for a
single cause. I am highly grateful to Dr. Meenakshi Sharma for providing this opportunity
carry out this project. I would like to express my gratitude to Mr.Vibhankar Khajuria project
guide, who has provided me with necessary information and also for the support given to me
in the completion of this report and the valuable suggestions and comments on bringing out
this report in the best way possible.
Finally I express my indebtedness to all who have directly or indirectly contributed to

successful completion of this project.
SUHANEE PANDITA
6th SEMESTER
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DECLARATION
I hereby declare that the following documented project report entitled “A STUDY ON
FINANCING OF RETAI LOANS AND CUSTOMER SATISFACTION ON THE LOANS
PROVIDED BY THE J&K BANK” is an organised and authentic work prepared b me as an
intern under Business Management. This work is done for the partial fulfilment of
Bachelors of Business Administration degree. The findings on this report are collected by
me. All the endeavours put in the completion of the task are genuine and original to the best
of my knowledge. No part of this report is in form duplicated of any other report.
Student’s signature Director’s

signature
Date.................. Date................
Project guide’s signature

Date ...................
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EXECUTIVE SUMMARY
Banking Industry is one of the major sectors of Indian economy. The recent interest on
financial services has brought this sector in sharp focus. In this project the customer
satisfaction levels for J&K Bank has been studied with respect to three retail loans Housing
loan, Education loan and Vehicle loan.
The project gave me a great learning experience and at the same time gave me enough scope
to check the satisfaction level of customers of the J&K Bank. For easier reading and
understanding, the report has been divided into seven major chapters. The first chapter
starts with the introduction to the topic i.e. customer satisfaction and financing procedure for
retail loans. The second chapter deals with company profile that is profile of J&K Bank
(zonal office) wherein various products and services offered by the bank, its history and
development and loans and finance schemes are discussed.
In the third chapter the relevant literature regarding this topic has been reviewed. Different
views and works of various researchers and authors have been discussed. For example
authors such as Munusamy, J., Chelliah, S., & Mun, H. W. (2010) and Siddiqi, K. O. (2011)
have researched the factors leading to satisfaction with the banking services.
The fourth chapter deals with research methodology which consists of research objectives,
research design (descriptive research), sampling techniques and size (80), in addition to
sources of data collection, questionnaire design and analysis tools.
The fifth chapter consists of data analysis based on the responses of customers to the
questionnaire with the use of graph and charts, percentage analysis and statistical mean. In
the next chapter findings and results are discussed based on the observations from data
collected through questionnaires. Finally, in the last chapter, the complete research is
concluded, and suggestions are provided for the organisation to improve their performance.
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TABLE OF CONTENTS
S.No CHAPTERS TITLE PAGE No.
1 Title Page i
2 Company Certificate ii
3 Acknowledgement iii
4 Declaration iv
5 Executive Summary v
6 CHAPTER 1 Introduction 2-6
7 CHAPTER 2 Company Profile 7-14
8 CHAPTER 3 Review of Literature 15-18
9 CHAPTER 4 Research Methodology 19-24
10 CHAPTER 5 Data Analysis & Interpretation 25-41
11 CHAPTER 6 Findings and Results 42-43
12 CHAPTER 7 Conclusion , Suggestions & 44-45

Limitations
13 Annexures 46-57
i References
ii Questionnaire
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CHAPTER 1
INTRODUCTION
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1.1 BACKGROUND
Customer satisfaction is a term often used in marketing to understand the satisfaction levels
of customers with the product and services of any organisation. It is a measure of how
products and services that are being offered by an organization perform in affinity to meet or
transcend a set of customer requirements and customer expectations. Customer satisfaction
is the frame of mind that customers have about an organization when the products and
services offered by the company meets their desired expectations or exceeds over the life
time value of the product or service that has been offered.
In today’s hyper competitive market place where businesses strive hard for customers,
customer satisfaction is seen as a key business differentiator that helps to attract new
customers and ensures that businesses stay on the cutting edges of the industry trends and
innovations that shapes and governs business.
Nowadays, companies are focusing on high satisfaction because highly satisfied customers
are much less ready to switch over other products that are being offered by the competitors.
Mere satisfied customers can switch over because they find it easy to switch when a better
offer in the form of product or service comes along. High satisfaction provides so much
insight into customers and results in customer delight thus creates an emotional bond of the
customer with the product. Customer satisfaction plays a significant role in creating
customer loyalty because when the expectations of the customers are continuously being met
customers feel delighted and this results into customer loyalty, henceforth, increases the
sales, growth, profitability, revenue and reputation of the business and distinguishes it from
the competitors.
Process of customer satisfaction

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1.2 THE BASIC NEEDS OF CUSTOMERS

1. Friendliness
Friendliness is the most basic of all customers needs, usually associated with being greeted
graciously and with warmth. Customers want to be acknowledged and welcomed by
someone who sincerely is glad to see them.
2. Understanding and empathy
Customers need to feel that the service person understands and appreciates their
circumstances and feelings without criticism or judgment. Customers have simple
expectations that we who serve them can put ourselves in their shoes, understanding what it
is they came to us for in the first place.
3. Fairness
Customers get very annoyed and defensive when they feel they are subject to any class
distinctions. No one wants to be treated as if they fall into a certain category, left wondering
if “the grass is greener on the other side” and if they only received second best.
4. Information
“Tell me, show me – everything!” Customers need to be educated and informed about the
products and services, and they don’t want leaving anything out! They don’t want to waste
precious time doing homework on their own – they look to us to be their walking, talking,
information central.
1.3 FACTORS THAT INFLUENCE CUSTOMER SATISFACTION
1. Accessibility
Companies need to ensure that customers are able to find and access your products and
services efficiently, without barriers and friction, on their preferred channel. Also, make sure
that they can reach your company and obtain good service whenever they have a question or
need assistance to make a purchase decision.
2. Navigation
Navigating and browsing your store should be a straightforward and simple process. This
includes providing users who know what they want with an effective keyword search or
filters but also integrating solutions that guide unsure shoppers to help them identify suitable
products quickly.
3. Language
Speaking to customers in their preferred language is pivotal for business. More than 50% of
consumers won’t make a purchase if information about a product isn’t available in their
language. However, language doesn’t only apply to language in terms of geographical
demographics but also how certain phrases or terms resonate with your audience and reflect
back on your business. Use user-friendly language and avoid industry specific jargon that
could cause confusion and rob you of an opportunity to connect on a personal level.
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4. Memory
According to Harvard Business Review, customers become frustrated if they have to repeat
themselves. Consumers feel comfortable switching from one channel to another and expect
their information and data to follow them along. They don’t want to be asked for the same
details over and over again, regardless of the channel or department, they’re interacting with.
5. Convenience
Convenience is an essential element of a positive customer experience. It influences how
customers make decisions about what to buy, what services to use, where to go, and with
whom to engage.
1.4 MEASURES OF CUSTOMER SATISFACTION
A happy customer stays with your business longer. And if companies want to keep them as
long as possible because acquiring new customers is 5-25 times more expensive than keeping the
current ones.
And it’s not just about the costs; it’s about income as well. Increasing customer retention by
5% can boost your profits by up to 95%.
1.5 CUSTOMER SATISFACTION IN BANKING

Now a days banking has changed because banking services are no more based on Brick and
mortar structure. Due to Continues growth of technology, increasing customer base,
evolution of alternate banking channels, has changed the way of banking services, so hence
the customer satisfaction. Banking is a customer oriented service industry and customer
satisfaction has become the most important aspect of any banking business due to immense
competition. Banks are more determined to retain their existing customers by providing
quality services leading to Customer satisfaction. The concepts and determinants of
customer satisfaction has changed significantly as transition has taken place from
traditional to modern banking. This could be witnessed by exploring the literature
regarding customer satisfaction in banking industry. This paper is based on extensive
literature review and attempts to investigate how the concepts and determinants of
customer satisfaction has changed significantly during the transition from traditional
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to modern banking. The findings of the study will provide an important insight into the past
trends of customer satisfaction and will provide a base for the bank managers to devise
customer satisfaction strategies in near future
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CHAPTER 2
COMPANY PROFILE
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2.1 UNIQUE CHARACTERSTICS & SERVICES

The origin of Jammu and Kashmir Bank Limited, more commonly referred to as J&K Bank
can be traced back to the year 1938, when it was established as the first state-owned bank in
India. The bank was incorporated on 1st October, 1938 and on 4th July, 1939 .It commenced
its business in Kashmir (India). It was initially set public under the control of State
Government.
Jammu And Kashmir Bank had to face serious problems in 1947 i.e., at the time of
independence. With the partition of Pakistan, two out of the total ten branches of the bank,
namely the ones in Muzaffarabad and Mirpur, fell to the other side of the line of control
(now Pak Occupied Kashmir), along with cash and other assets. At that point of time, in
keeping with the extended Central laws of the state J&K Bank was categorized as a
Government Company, as per the provisions of Indian Companies Act, 1956.
It was in the year 1971 that Jammu and Kashmir Bank was granted the status of a
‘Scheduled Bank’. Five years later, it was declared as a class bank, by the Reserve Bank Of
India (RBI). As the years passed on, the bank started achieving more and more success.
Today, it boasts of more than 800 branches across the country. It was only recently bank that
became the billion Dollar Company. Governed by the Companies Act and Banking
Regulations Act of India, it was regulated by RBI and SEBI. It finds a listing on the National
Stock Exchange (NSE) and Bombay stock Exchange (BSE) as well.
J &K Bank carries out banking business of the Central Government. Plan and non-plan
funds, taxes and non taxes revenues are routed through the J&K Bank. J&K Bank claims the
distinction of being the only private sector bank that has been designated as agent of RBI for
banking. The services of J&K Bank are utilized for the purposes of disbursing the salaries of
Government officials. J&K Bank collects taxes pertaining to the Central Board of direct
taxes , in Jammu and Kashmir.
2.2 PRODUCTS AND SERVICES OFFERED BY J&K BANK

Support Services
Anywhere banking
Internet banking
SMS Banking
ATM Services
Debit Cards
Credit Cards
Merchant Acquiring
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Depository Services
DE mat Account
Other Services
Third Party Services

Mutual Funds
Insurance Services-Life and Non -life
Remittance Services
Cash Management services

Real Time Gross Settlement (RTGS)
National Electronic Fund Transfer (NEFT)
2.3 BRAND IDENTITY
The new identity for J&K Bank is a visual representation of the Bank’s philosophy and
business strategy. The three coloured squares represent the regions of the J&K namely
Jammu, Kashmir and Ladakh. The counter –form created by the interactions of the squares
is a falcon with outstretched wings –a symbol of power and empowerment.
Green Signifies growth and Renewal
Blue conveys Stability and Unity
Red represents Energy and Power

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Vision
"To catalyse economic transformation and capitalise on growth."
Our vision is to engender and catalyse economic transformation of Jammu and Kashmir and
capitalise from the growth induced financial prosperity thus engineered. The Bank aspires to
make Jammu and Kashmir the most prosperous state in the country, by helping create a new
financial architecture for the J&K economy, at the center of which will be the J&K Bank.
Mission
Our mission is two-fold: To provide the people of J&K international quality financial
service and solutions and to be a super-specialist bank in the rest of the country. The two
together will make us the most profitable Bank in the country.
2.4 CUSTOMER SERVICES

The bank continued its emphasis on maintaining high standards of service to its customers.
In this direction, the bank introduced various hi-tech & customer friendly products during
the year, providing value added service to achieve customer satisfaction. Customer
complaints received are dealt promptly & expeditiously. The bank is a member of the
banking codes & standards board of India &has adopted ‘code of Bank’s commitment to
customers’, a voluntary code providing protection & ‘Right to Know’ to the customers. The
bank has established a 24*7 help desk to address customer queries & the desk id slated to be
converted into a full-fledged call centre in 2007-08. The bank is also keenly pursuing for
ISO certification for its customer service.
2.5 CSR ASPECT OF BANK

Bank will implement its CSR projects/programmes in the following areas. As the specified
areas have been made broad based ever since the mandated bill, as such, the areas , the
broader activities to be covered under “J&K Bank CSR Policy” shall be as under:
1. Eradicating hunger, poverty and malnutrition promoting healthcare including

preventive healthcare and sanitation including contribution to the Swach Bharat Kosh set-
up by the Central Government for the promotion of sanitation and making available safe
drinking water;
2. Promoting education , including Special education and employment enhancing vocation
skills especially among children, women, elderly and differently abled and livelihood
enhancement Projects;
3. Promoting gender equality , empowering women , setting up homes and hostels for
women and orphans; setting up old age homes, day care centers and such other facilities
for senior citizens and measures for reducing inequalities faced by socially and
economically backward groups;
4. Ensuring environmental sustainability , ecological balance, protection of flora and
fauna, animal welfare, agro forestry, conservation of natural resources and maintaining
quality of soil , air and water including contribution to the Clean Ganga Fund set up by
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the Central Government for rejuvenation of river Ganga;

5. Protection of National Heritage , art and culture including restoration of buildings and
sites of historical importance and works of art, setting up public libraries; promotion and
development of traditional arts and handicrafts;
6. Measures for the benefit of armed forces veterans, war widows and their dependents;
7. Training to promote rural sports, nationally recognized sports, Para Olympic sports and
Olympic sports;
8. Contribution to the Prime Minister’s National Relief Fund or any other Fund set up by
the Central Government for socio-economic development and relief and welfare of the
Scheduled castes, the Scheduled Tribes , other backward classes, minorities and women;
9. Contribution or Funds provided to technology incubators located within academic
institutions which are approved by the Central Government;
10. Rural Development Projects;
11. Slum Area Development
Specialised Finances
 Help tourism (For valley only)
 All Purposes Agri Term loan
 Fruit Advances Schemes(Apple)
 Zafran Finance
 Roshni Financing Scheme
 Craft development finance
 Dastkar Finance
 Giri Finance Scheme
 Khatamband Craftsmen Finance
 Commercial Premises Finance
2.6 Policy Initiatives/ Objectives for FY 2019-2020

Credit Policies are essentially aimed at supporting the business strategies, achieving targets
earnings with satisfaction of customer needs and maintaining a sound credit portfolio.
Main objectives:
 Create a framework to ensure smooth and timely flow of credit to the bank’s customers,
ensure a prudent credit growth –both qualitative and quantitative.
 Adhere to the lending norms prescribed by the Bank, RBI& Govt. from time to time.
 Ensure consistency in and standardisation of credit practices.
 Ensure balanced sectorial &diversified growth of credit so as to have a proper risk
spectrum with in prudential exposure norms.
 Concentrate on growth of SME credit &lending to other priority sector categories,
particularly in J&K state through innovative loan products for realization of social
commitments and ensuring dispersal of risk as well as improvement in yield.
 Digitalise the whole aspects of bank
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~ Online financing details

~Promote PMJDY
~With a view to establishing an efficient credit system, following policy decisions have
been taken by the bank:
~Establishment of Corporate Finance Branches
~Establishment of SSI finance branches
~Formation of matching Credit delivery Channels
~Large Corporate Branches
~Exclusive BDPC’s at district levels
2.7 THRUST AREAS OF BANK

 Retail Segment
a) Agriculture& Horticulture
b) Trade & Small business
c) Medium , small and micro enterprises under MFG.& services sector.
d) Housing, consumer and consumption loans
e) Education loans
 Export credit
 Industries
a) Cement
b) Automobiles
c) IT
d) Iron & Steel
2.8 SWOT ANALYSIS OF J&K BANK

STRENGTHS
 Good reputation and excellent growth and customer loyalty and trust.
 A listed company on BSE and NSE with four decades of uninterrupted profitability and
dividend payment.
 Wide network of branches across the state and country.
 World class banking services like Telebanking and excellent ATM network.
 Innovative in products and services supported in latest technology.
 Best practices in corporate governance.
 The bank has also branches in far areas of J&K.
 The bank plays a proactive role in the development of J&K economy.
WEAKNESS
 Lesser promotions and advertisement of bank and its products within and outside state.
 Bank doesn’t have any branch outside India to enter global market.
 The credit card facilities are not available on some online shopping stores.
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OPPORTUNITIES
 The bank can have tie ups with national and international financial institutions to offer new
and upgraded services and products.
 The bank enjoys very well customer loyalty. It can diversify its business so as not to lose the
customers to the competing rivals.
 The historical activities of the state such as carpet industry, dastakar finance, Khatamband
schemes and many other activities of historical importance are not still fully covered by
J&K Bank.
 The bank can introduce sale of gold coins to make more profits.
THREATS
 High level of competition from the other national banks particularly within and outside J&K
state.
 Policies regarding interest rate have to be competing with other banks in this stiff
competition.
 Technological changes in the banking sector on changing rapidly. The need of the hour is
that the bank should have innovation in the products and services and keep itself updated
with latest technologies.
 Customer friendly services and products should be given priority as other banks are posing
stiff competition by offering new customers tuned products and services to attract customer
of other banks.
 Labour problems because of the disturbance in the state which results in strikes and tense
conditions.
HOUSING LOAN
Home loan is a loan product where the lender provides funding for purchase or construction
of a house/residential property. The housing loan may be availed either for buying a new
house or resale of residential house. One can also avail a housing loan product, for the
purpose of buying a plot of land and carrying out construction on the same, which is called
Composite loan.
Home loans are repaid through monthly instalments (EMI) spread over upto 20years. Some
of the banks provide housing loans even for a tenure extending upto 25-30 year. The
maximum tenure of any loan and home loan specially is also restricted by the borrower’s
age at the end of the tenure so as to ensure that the loan gets fully paid by or before the
retirement age.
EDUCATION LOAN
Education loan is a special kind of loan granted by banks under which some amount of
money is granted to students at special rates. With the help of education loan, the students
can achieve higher and costly studies at cheaper rates.
CRAFT LOAN
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To provide adequate and timely credit for comprehensive requirements of artisans &
craftsmen, etc. All artisans, crafts men and other people aged 18 to 55 years.
AUTO LOAN
An auto loan is basically a loan that we take out in order to purchase a vehicle. With an auto
loan, we are not paying on the depreciation of the vehicle like we do with a lease. We are
paying on the vehicle purchase price plus interest.
PERSONAL LOAN
Consumer loan granted for personal (medical), family (education, vacation), or household
(extension, repairs, purchases) use as opposed to business or commercial use. Such loans are
either secured by the asset purchased by or by a co-signor (guarantor). Unsecured loans
(signature loans) are advanced on the basis of the borrower’s credit-history and ability to
repay the loan from personal income. Repayment is usually through fixed amount
instalments over a fixed term.
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CHAPTER 3
LITERATURE REVIEW
Siddiqi (2011) studied the interrelationships between service quality attributes, customer
satisfaction and customer loyalty in the retail banking sector in Bangladesh. The study
sought to identify the most important attributes in bank settings, which may be used to
review characteristics of the banks as experienced by customers.
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Hanif, Hafez & Riaz (2010) studied the impact of Price Fairness and Customer Services on
customer satisfaction and showed that both the factors significantly contributed to explain
customer satisfaction but comparatively price fairness had the larger impact on customer
satisfaction than customer services. The study included the subscribers of telecom sector or
the mobile service providers like Ufone, Mobilink, Telenor etc.
Munusamy, J., Chelliah, S., & Mun, H. W. (2010) focused on the measurement of
customer satisfaction through delivery of service quality in the banking sector. A
quantitative research was used to study the relationship between service quality dimensions
and customer satisfaction. It was observed that Assurance, Responsiveness and Empathy has
positive relationship but it has no significant effect on customer satisfaction while
Reliability has negative relationship but it has no significant effect on customer satisfaction.
Similarly, Tangibles have positive relationship and have significant impact on customer
satisfaction. The study highlights implications for marketers in banking industry for
improvement in delivery of service quality.
Shanka, M. S. (2012), studied the quality of service offered by private banks. Moreover, it
tries to investigate the relationship between service quality, customer satisfaction and
loyalty. The five dimensions of SERVPERF model i.e. reliability, assurance, tangibility,
empathy and responsiveness were used to measure the quality of service offered by the
private banks. The primary data were collected through administrating questionnaire.
Convenient sampling procedure was used to obtain 260 responses from customer of banking
services in Hawassa city on the 22 item SERVPERF scale to measure perception regarding
their respective banks service. Results indicated that there is a positive correlation between
the dimensions of service quality and customer satisfaction.
Ngo, V. M., & Nguyen, H. H. (2016), in their study highlighted the interrelationships
between service quality, customer satisfaction, and customer loyalty. A survey was
conducted with retail banking customers about these constructs, which results in 261 valid
respondents. The analysis revealed that service quality and customer satisfaction are
important antecedents of customer loyalty and customer satisfaction mediates the effects of
service quality on customer loyalty. These findings suggest that there are non-linear
relationships between three constructs and emphasize the need to treat customer loyalty
management as a process which includes plenty of factors interacting with each other.
Dubey, A., & Srivastava, A. K. (2016), studied the impact of service quality on customer
relationship management and customer loyalty in the Indian telecom sector. Service quality
has been considered as independent variable whereas customer relationship management and
customer loyalty were considered as dependent variable. Five antecedents of service quality
have been considered in this study viz. empathy, assurance, responsiveness, tangibility and
reliability based on SRVQUAL model of Persuraman et al (1988). A survey-based
exploratory and causal research design was used. A 29 items instrument was generated
comprising of 18 items for the four antecedents of independent variables on the basis of the
work of Persuraman et al (1988), 6 items for customer relationship management on the basis
of the work of Sin, Tse and Yim (2005) and 5 items for customer loyalty on the basis of the
work of Harsandaldeep Kaur and Harmeen Soch (2012). The data was collected from 262
customers using mobile service of various telecom operators of India through structured
questionnaires distributed online.
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Mohsan, F., Nawaz, M. M., Khan, M. S., Shaukat, Z., & Aslam, N. (2011), studied the
impact of customer satisfaction on customer loyalty and intentions to switch evidence from
banking sector of Pakistan. The study attempted to find the impact of customer satisfaction
on customer loyalty and intentions to switch. The data were collected from 120 customers
visiting the banks counters and had an account with banks serving in Pakistan. The results of
the study revealed that customer satisfaction was positively correlated with customer loyalty
and negatively correlated with customer intentions to switch.
Jham, V., & Khan, K. M. (2008), showed the satisfaction variables within the banking
industry. The key findings of an empirical research are based on the data collected from 555
customers. Systematic methodology, including design and validation of questionnaire, factor
analysis and regression analysis were utilised to enhance reliability of the findings. The
study reinforces that customer satisfaction is linked with performance of the banks. The
authors demonstrate how adaptation of satisfaction variables can lead to better performance
Al-Eisa, A. S., & Alhemoud, A. M. (2009), studied the salient attributes that influence
customer satisfaction with retail banks to determine the level of the overall satisfaction of
the customers. Design/methodology/approach was used in conducting this research.
Mandal, P. C., & Bhattacharya, S. (2018), studied the construct of customer satisfaction
and scale development and validation with respect to Indian retail banking The scale
development was carried out over three stages (item generation, scale purification, scale
validation).
Mandal, P. C., & Bhattacharya, S. (2013), studied customer satisfaction in Indian retail
banking: A grounded theory approach. . studied the dimensions of customer satisfaction by
applying Grounded Theory Method, depth interviews and focus groups of Indian retail
banking customers. The participants were persons who have availed Indian retail banking
services.
Al-Hudhaif, S. A. (2011), highlights the critical success factors for implementation of

customer relationship management in the banking sector of Saudi Arabia1. The study aims
to validate the positive impact of management support, CRM implementation strategy, and
the software used to implement CRM with regard to customer retention
Sanjuq, G. (2014), studies the impact of service quality that underlies the SERVQUAL
model has on customer satisfaction in Saudi Arabia’s banking sector. Regression analysis
found a positive relationship among assurance, empathy, and responsiveness, but that this
relationship has no significant effect (P≥0.50) on customer satisfaction. Reliability was
found to have a negative relationship to customer satisfaction, but no significant effect on
the same. Only tangibles were found to have a positive relationship and a significant impact
(P˂0.50) on customer satisfaction. The results show that, in the retail banking sector, the
servqual model remains an effective way of measuring customer satisfaction. Because
customer value is an asset to organizations, organizations must ensure that they provide the
right products and services, supported by the right promotion, at the right time for their
customers.
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Khan, M. M., & Fasih, M. (2014), studied the satisfaction level of banking customers
regarding quality of different services provided by their bank and their loyalty with the
respective bank. Service quality is studied within a spectrum of different dimensions. An
effort is also made to find out which service quality dimensions may enhance customer
satisfaction and customer loyalty in a better way. Respondents are chosen from a range of
varying demographic features using stratified random sampling. Banks from both public and
private sector are selected for sampling.
Naeem, H., Akram, A., & Saif, M. I. (2009), this study investigate the impact of service
quality on customer satisfaction in the Pakistani banking sector. Hypothesis developed for
the study was higher level of service quality leads to higher level of customer satisfaction.
Various constructs of SERVQUAL model developed by Zeithaml and Bitner (1996) and
five point customer satisfaction tool developed by Taylor and Baker (1994) were adopted
and used for the study. The study concluded that service quality, if managed effectively, can
contribute significantly towards customer satisfaction.
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CHAPTER FOUR
RESEARCH
METHODOLOGY
Research methodology is the specific procedures or techniques used to identify, select,

process, and analyze information about a topic. In a research paper, the
methodology section allows the reader to critically evaluate a study’s overall validity and
reliability.
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4.1 OBJECTIVES OF STUDY

 To study the financing procedure of retail loans provided by J&K Bank.
 To study the satisfaction level of Customers towards the Housing loan, Education loan
and Vehicle loan provided by J&K Bank.
4.2 RESEARCH DESIGN

Research design is defined as a framework of methods and techniques chosen by a
researcher to combine various components of research in a reasonably logical manner so that
the research problem is efficiently handled. It provides insights about “how” to conduct
research using a particular methodology. Every researcher has a list of research questions
which need to be assessed – this can be done with research design.
Types of Research Design
Exploratory Research
Exploratory research is an important part of any marketing or business strategy. Its focus is
on the discovery of ideas and insights as opposed to collecting statistically accurate data.
That is why exploratory research is best suited as the beginning of your total research plan.
It is most commonly used for further defining company issues, areas for potential growth,
alternative courses of action, and prioritizing areas that require statistical research.
Descriptive Research
Descriptive research takes up the bulk of online surveying and is considered conclusive in
nature due to its quantitative nature. Unlike exploratory research, descriptive research is
preplanned and structured in design so the information collected can be statistically inferred
on a population.
Causal Research
Like descriptive research, causal research is quantitative in nature as well as preplanned and
structured in design. For this reason, it is also considered conclusive research. Causal
research differs in its attempt to explain the cause and effect relationship between variables.
This is opposed to the observational style of descriptive research, because it attempts to
decipher whether a relationship is causal through experimentation. In the end, causal
research will have two objectives: 1) To understand which variables are the cause and which
variables are the effect, and 2) to determine the nature of the relationship between the causal
variables and the effect to be predicted.
In this project Descriptive research design has been used to understand the satisfaction levels
of customers with the loans schemes of J&K bank.
4.3 SAMPLING PLAN

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Sampling is the process of selecting a sufficient number of elements from the population, so
that the sample and an understanding of its properties of characteristics would make it
possible for us to generalize such properties or characteristics to the population elements
A sampling plan is a detailed outline of which measurements will be taken at what times, on
which material, in what manner, and by whom. Sampling plans should be designed in such a
way that the resulting data will contain a representative sample of the parameters of interest
and allow for all questions, as stated in the goals, to be answered.
Types of Sampling:
1. Probability Sampling Methods

Probability Sampling is a sampling technique in which sample from a larger population are
chosen using a method based on the theory of probability. This sampling method considers
every member of the population and forms samples on the basis of a fixed process. For
example, in a population of 1000 members, each of these members will have 1/1000 chances
of being selected to be a part of a sample. It gets rid of bias in the population and gives a fair
chance to all members to be included in the sample.
There are 4 types of probability sampling technique:
 Simple Random Sampling: One of the best probability sampling techniques that helps in
saving time and resources, is the Simple Random Sampling method. It is a trustworthy
method of obtaining information where every single member of a population is chosen
randomly, merely by chance and each individual has the exact same probability of being
chosen to be a part of a sample.
 Cluster Sampling: Cluster sampling is a method where the researchers divide the entire
population into sections or clusters that represent a population. Clusters are identified and
included in a sample on the basis of defining demographic parameters such as age,
27
location, sex etc. which makes it extremely easy for a survey creator to derive effective
inference from the feedback.
 Systematic Sampling: Using systematic sampling method, members of a sample are chosen
at regular intervals of a population. It requires selection of a starting point for the sample
and sample size that can be repeated at regular intervals. This type of sampling method
has a predefined interval and hence this sampling technique is the least time-consuming.
 Stratified Random Sampling: Stratified Random sampling is a method where the

population can be divided into smaller groups, that don’t overlap but represent the entire
population together. While sampling, these groups can be organized and then draw a
sample from each group separately.
2. Non-probability Sampling Methods

The non-probability method is a sampling method that involves a collection of feedback on
the basis of a researcher or statistician’s sample selection capabilities and not on a fixed
selection process. In most situations, output of a survey conducted with a non-probable
sample leads to skewed results, which may not totally represent the desired target
population. But, there are situations such as the preliminary stages of research or where there
are cost constraints for conducting research, where non-probability sampling will be much
more effective than the other type.
There are 4 types of non-probability sampling
 Convenience sampling: This method is dependent on the ease of access to subjects such as
surveying customers at a mall or passers-by on a busy street. It is usually termed
as convenience sampling, as it’s carried out on the basis of how easy is it for a researcher
to get in touch with the subjects. Researchers have nearly no authority over selecting
elements of the sample and it’s purely done on the basis of proximity and not
representativeness. This non-probability sampling method is used when there are time
and cost limitations in collecting feedback. In situations where there are resource
limitations such as the initial stages of research, convenience sampling is used.
 Judgmental or Purposive Sampling: In judgemental or purposive sampling, the sample

is formed by the discretion of the judge purely considering the purpose of study along
with the understanding of target audience. Also known as deliberate sampling, the
participants are selected solely on the basis of research requirements and elements who do
not suffice the purpose are kept out of the sample. For instance, when researchers want to
understand the thought process of people who are interested in studying for their master’s
degree. The selection criteria will be: “Are you interested in studying for Masters in …?”
and those who respond with a “No” will be excluded from the sample.
 Snowball sampling: Snowball sampling is a sampling method that is used in studies

which need to be carried out to understand subjects which are difficult to trace. For
28
example, it will be extremely challenging to survey shelterless people or illegal

immigrants. In such cases, using the snowball theory, researchers can track a few of that
particular category to interview and results will be derived on that basis. This sampling
method is implemented in situations where the topic is highly sensitive and not openly
discussed such as conducting surveys to gather information about HIV Aids. Not many
victims will readily respond to the questions but researchers can contact people they
might know or volunteers associated with the cause to get in touch with the victims and
collect information.
 Quota sampling: In Quota sampling, selection of members in this sampling technique

happens on basis of a pre-set standard. In this case, as a sample is formed on basis of
specific attributes, the created sample will have the same attributes that are found in the
total population. It is an extremely quick method of collecting samples.
For the purpose of sample selection, Convenience sampling method was adopted.
4.4 SAMPLE SIZE

Sample size determination is the act of choosing the number of observations or replicates to
include in a statistical sample. The sample size is an important feature of any empirical study
in which the goal is to make inferences about a population from a sample.
The sample size for this project is: 80
Housing Loan 26
Education Loan 30
Vehicle Loan 24
All respondents were the customers of J&K Bank
4.5 DATA Collection Methods

For the study purpose both Primary data and Secondary data are used.
PRIMARY DATA
The primary data collected from customers of the bank. Primary data is collected through
structured questionnaire.
SECONDARY DATA
Secondary data in this research work were collected from books, magazines, and Internet
website and other online sources which contribute to the quantitative data as well as
qualitative data. The information compiled from these sources will ensure a clear
understanding of this project.
Thus, a combined approach of both primary and secondary data has been used in this
extensive research. This is a descriptive kind of research consisting of survey through the
method of “Questionnaire Method” with the customers of J&K Bank.
4.6 QUESTIONNAIRE DESIGN

29
A questionnaire is a research instrument consisting of a series of questions and other

prompts for the purpose of gathering information from respondents. The questionnaire used
in the project includes a close ended type of Questionnaire with questions based on Likert
Scale. A“Likert scale” is the sum of responses to several Likert items. A “Likert item” is a
statement that the respondent is asked to evaluate in a survey.
The questionnaire was distributed to the customers of the Bank. A covering letter was
attached together with the questionnaire by explaining the purpose of this research, assuring
the confidentiality of their response and instructing them to complete the questions. The
questionnaire consists of 11 likert scale questions and 2 demographic questions.
4.7 Analysis Tools

The data has been analyzed using pie charts, bar graphs and statistical tools such as Mean,
based on demographic factors.
30
CHAPTER FIVE
DATA ANALYSIS AND
INTERPRETATION
31
Research Objective 1: Study of Financing Procedure of Housing,

Education and Vehicle loans provided by J&K Bank
The Housing loan is given for the purpose of construction or purchase of residential houses/
flats by the individuals. It can also be availed by people who propose to let it out on rental
basis on account of his posting outside the home town. Housing loan can also be sanctioned
for repairs & renovation of houses / flats already constructed with own resources or with
housing loan whether liquidated or outstanding. Housing loan can be sanctioned for
purchase/construction of second house. Loan can be sanctioned for acquiring third and
subsequent house too but such loans shall not be sanctioned under this scheme and are to be
dealt as Exposure to Commercial Real Estate (CRE)
For the eligibility of customers, quantum of finance, margin money, rate of interest, etc.
please refer to Table no. 6 a), b), c), d), e)
The Education loan is given for the purpose of providing finance to the students for their
higher studies in India or abroad. Before sanctioning loan students have to complete all the
procedures and various formalities provides by the bank such as eligibility criteria that
he/she should be an Indian, should have secured admission to a higher education course in
recognized institutions in India or Abroad through Entrance Test/ Merit Based Selection
process after completion of HSC(10 plus 2 or equivalent) and many more. There is no
specific restriction with regard to the age of the student to be eligible for education loan.
There are wide range of courses financed by J&K Bank in India as well as in abroad such as
graduation, post graduation, engineering, law and many more. But the condition is that they
should be conducted by recognised colleges/ universities recognized by UGC/ Govt./
AICTE/ AIBMS/ ICMR etc.
For the eligibility of customers, quantum of finance, margin money, repayment, rate of
interest, etc. please refer to Table no. 7 a), b), c), d), e), f)
The Vehicle loan is given for the purpose of providing finance to the individuals for the
purchase of fresh cars or for Proprietorship Concerns. It also provides finance for purchase
of new “Cars/ Van/ Jeep/ SUV/ MUV for private use only.
It provides finance by two ways: at“Ex Showroom” Prices Or “On-Road”
*On-Road Price shall mean Ex-Showroom Price plus One Time Registration Charges plus
Insurance Premium (first year only).
Finance shall be provided for Ex-Show Room price and Registration only, in case customer
opts to self-finance the Insurance Premium.
Before sanctioning of loan customers have to submit wide range of formalities to the bank.
For the eligibility of customers, quantum of finance, margin money, rate of interest, etc.
please refer to Table no. 8 a), b), c), d), e)
32
Research Objective 2 : Study of Satisfaction level of Customers towards

the Housing loan, Education loan and Vehicle loan provided by J&K
Bank.
GENDER OF RESPONDENTS
Respondents are divided into 2 groups Male and Female
Male Female
Housing Loan 17 9
Education Loan 11 19
Vehicle Loan 16 8
20 19
18 17
16
16
14
12 11
10 9 Male
8 Female
8
0
Housing Loan Education Loan Vehicle Loan
33
AGE OF RESPONDENTS
Respondents age are divided into 4 groups
Group I (18 – 30) years
Group II (30 – 40) years
Group III (40 -50) years
Group IV (50 -60) years
Loans Group I Group II Group III Group IV
Housing Loan 6 10 6 4
Education Loan 30 0 0 0
Vehicle Loan 3 16 5 0
35
30
30
25
20 Group I (20 -30)

16 Group II (30 -40)
15 Group III (40 - 50)
10 Group IV (50 - 60)
10
6 6 5
5 4 3
0 0 0 0
0
Housing Loan Education Loan Vehicle Loan
1. I am satisfied with the interest rate on the loan.

34
Strongly Agree Neutral Disagree Strongly

Agree Disagree
Housing Loan 0 8 14 4 0
Education Loan 0 14 16 0 0
Vehicle Loan 0 2 10 12 0
18
16
16
14 14
14
12
12
10 Stongly Agree
10 Agree
8
8 Neuttral
Disagree
6
4 Strongly Disagree
4
2
2
0
0
Housing Loan Education Vehicle Loan
Loan
Out of 26 respondents, 54% respondents were satisfied with the interest rate on the Housing
loan. Similarly, in the case of Education loan, 47% respondents agreed that the interest rate
on the loan is satisfactory. While in case of Vehicle loan, only 8% respondents were
satisfied with the interest rate on the loan.
2. I am satisfied with the margin money required to deposit during repayment of loan
35

Agree Disagree
20 19
18
16
14
14
12
12 Strongly Agree
10
10 9 Agree
8 Neutral
8
Disagree
6 Strongly Disagree
4
4
2
2 1 1
0 0
0
Housing Education Vehicle loan
Loan Loan
In Housing loan category, 38% respondents were dissatisfied with the margin money
required to deposit during repayment of loan while in case of Education loan, only 7% were
dissatisfied and 42% respondents were dissatisfied in the case of Vehicle loan.
3. I am satisfied with the amount of requirements before sanctioning of loan

36

Agree Disagree
18 17
16
14
14
12 11
10 Strogly Agree
10
8 Aree
8 7 Neutral
6 Disagree
4 4 Strongly Disagree
4 3
2 1 1
0
0
Loan
Out of 26 respondents in case of Housing loan, 65% respondents were satisfied with the
amount of requirements before sanctioning of loan. In case of Education loan 50%
respondents are satisfied with the requirements needed by the bank before sanctioning of
loan. While in case of Vehicle loan only 17% were satisfied with the amount of
requirements needed by the bank.
4. I am satisfied with the Bank’s procedure of checking all the documents

37

Agree Disagree
20
18
18
16 15
14
12 Strongly Agree
10 10
10 Agree
8 Neutral
8 7
6 Disagree
6
4 Strongly Disagree
4
2 1
0 0 0
0
Loan
In Housing loan category 65% respondents were satisfied with the bank’s procedure of
checking all the documents. Similarly in the case of Education loan 63% respondents were
satisfied. And in case of Vehicle loan, about 75% respondents were satisfied with the
procedure of the bank.
5. I am satisfied with the services of the Bank officials when I approached the Bank for the
loan
38

Agree Disagree
18 17
16
14
14 1313
12 11
Strongly Aree
10 Aree
8 Neutral
6
6 Disagree
4
4 Stronly Disagree
2
2
0
0
Hhousing Education Vehicle Loan
Loan Loan
In case of Housing loan category, out of 26 respondents all the respondents were satisfied
with the services provided by the Bank officials when they approached Bank for the Loan.
Similarly in the case of Education 93.3% respondents were satisfied with the services
provided by the Bank officials. While in case of Vehicle loan 75% respondents were
satisfied with the services of Bank officials
6. I am satisfied with the Bank’s procedure of recovery of loan

39

Agree Disagree
18
16
16 15
14
14
12
12
Strongly Agree
10
Agree
8 7 Neutral
6
6 Disagree
Strongly Disagree
4 3
2
2 1 1
0 0
0
Housing Education Vehicle Loan
Loan Loan
In the case of Housing loan category, 4% respondents were dissatisfied with the Bank’s
procedure of recovery of loan. While in case of Education loan only, 3% respondents were
dissatisfied with the Bank’s procedure. Similarly in case of Vehicle loan 25% respondents
were dissatisfied with the Bank’s procedure of recovery of loan. Overall, the respondents did
not respond either positively or negatively on this issue.
7. I am satisfied with the moratorium period given by the Bank

40

Agree Disagree
18 17
16
16
14
12
12
10 Strongly Agree
10 9
Agree
8 Neutral
6 Disagree
6 Srongly Disagree
4 4
4 3 3
2
2
0
0
Housing loan Education Vehicle Loan
Loan
Out of 26 respondents 73% respondents were satisfied with the moratorium period given by
the Bank in case of Housing loan. While in the case of Education loan, only 46%
respondents were satisfied with the moratorium period given by bank and only 12.5%
respondents were satisfied in the case of Vehicle loan.
8. I am satisfied by giving third party guarantee of 2 or 3 persons

41

Agree Disagree
Vehicle loan 0 5 15 4 0
16 15
14
12
12 11
10
10
Strongly Agree
8 8
8 Agree
Neutral
6 5 Disagree
4 4 Strongly Disagree
4
2
2 1
0 0 0 0
0
Loan
In Housing loan category, 11% respondents were dissatisfied with the third party guarantee
of 2 or 3 persons. Similarly, in the case of Education loan 40% respondents were dissatisfied
and 16% respondents were dissatisfied with the third party guarantee of minimum 2 persons
in the case of Vehicle loan.
9. I am satisfied with the current procedure of MCLR (Marginal Cost of Lending Rates)
42

Agree Disagree
25
20
20
17
15
15 Strongly agree
Agree
10 Neutral
10 9
7 Disagree
Strongly disagree
5
1 1
0
0
Loan
Out of 26 respondents, in case of Housing loan category, 96% respondents were satisfied
with the current procedure of MCLR (Marginal Cost of Lending Rates). Similarly in the
case of Education loan 70% respondents were satisfied and in case of Vehicle loan only 29%
respondents were satisfied with the current procedure of MCLR
10. I am satisfied with the time taken by the Bank to finalise the loan case
43

Agree Disagree
18 17
16 15
14
14
12
12
Strongly Agree
10
8 Agree
8 Neutral
6 Disagree
5
4 Strongly Disagree
4
2 2
2 1
0 0
0
Housing Education Vehicle Loan
Loan Loan
Out of 26 respondents in case of Housing loan, 13.5% respondents were dissatisfied with the
time taken by the Bank to finalise the loan case, 46% respondents were dissatisfied in case
of Education loan and 20% respondents were dissatisfied with the time taken by the Bank to
finalise the loan in case of Vehicle loan
11. I am satisfied with the processing fee of the Bank

44

Agree Disagree
Vehicle loan 0 0 0 17 7
20 19
18 17
16
14
14
12
12 Stronly agree
10 9 Agree
Neutral
8 7 Disagree
6 Strongly Disagree
4
2
2
0 0
0
Housing loan Education Vehicle Loan
Loan
In case of Housing loan category, 100% respondents were dissatisfied with the processing
fee charged by the Bank. Also in Education loan 93% respondents were dissatisfied. In case
of Vehicle loan all respondents were dissatisfied with the processing fee charged by the
Bank.
TABLE 1: AVERAGE MEAN OF HOUSING LOAN
Questions Average mean

Q1 interest on loan 3.15
45
Q2 margin money on repayment 2.69

requirements needed by the bank
Q3 4
Q4 checking documents 3.88
Q5 service of bank officials 4.5
Q6 procedure of recovery of loan 3.73
Q7 moratorium period given by the bank 4
Q8 guarantee of persons 3.53
Q9 MCLR 4.53
Q10 time taken to finalise loan 2.69
Q11 processing fee charged by bank 1.46
Overall Mean for satisfaction 3.47
TABLE 2: AVERAGE MEAN OF EDUCATION LOAN
Questions Average mean

Q3 requirements needed by the bank 3.66
Q5 service of bank officials 4.5
Q7 moratorium period given by the bank 3.53
Q9 MCLR 3.73
TABLE 3: AVERAGE MEAN OF VEHICLE LOAN
Average
Questions mean
46

Q3 Requirements needed by the bank 3.04
Q5 service of bank officials 4
Q7 moratorium period given by the bank 2.1
Q9 MCLR 3.58
TABLE 4: AVERAGE MEAN OF GENDER
Loans
Male Female
Housing Loan 3.45 3.49
Education Loan 3.26 3.35
Vehicle Loan 2.99 2.98
TABLE 5: AVERAGE MEAN OF AGE GROUP
LOAN AGE GROUPS

20 - 30 30 - 40 40 - 50 50 - 60
Housing
Loan 3.77 3.29 3.54 3.36
Education
Loan 3.32 nil nil nil
Vehicle Loan 2.84 2.98 2.98 nil
47
CHAPTER SIX
FINDINGS/ RESULTS
1. Customers are mostly satisfied with the interest rate charged by the bank on their offered
loans. In case of vehicle loan, the mean satisfaction of 2.58 shows that the customers are
dissatisfied in this category.
48
2. Data shows that customers of education loan are satisfied (mean 3.23) while the
customers of housing and vehicle loan are not satisfied with the margin money required to
deposit during repayment of loan
3. Customers of all the three loans are mostly satisfied with the document required by the
bank before sanctioning of loan
4. Maximum customers of all the three types of loans (3.88, 3.8, and 3.75) are satisfied with
the Bank’s procedure of checking all the documents
5. When asked about the levels of service delivery, most of the customers (4.5, 4.5 and 4)
are satisfied with the services offered by the J&K Bank.
6. Customers of housing (3.73) and education loan (3.63) are satisfied with the Bank’s
procedure of recovery of loan while the customers of vehicle loan are slightly more
dissatisfied with the Bank’s procedure with mean of 2.83
7. Customers showed satisfaction with the moratorium period given by the bank on their
offered loans, but in case of education loan, the mean satisfaction of 2.1 shows that the
customers are highly dissatisfied in this category.
8. It was observed that customers of housing loan are highly satisfied with the MCLR
procedure with mean of 4.53 while other customers of different loans are also satisfied.
9. Data reveals that customers are not satisfied with the time taken by the Bank to finalise
the loan case in all the three loan cases with mean of 2.69 in housing loan, 2.66 in vehicle
loan and 2.87 in education loan.
10. It was also observed that customers of all the three loans are highly dissatisfied with the
processing fee charged by the Bank.
11. As observed from Tables 1, 2 and 3, the mean for Vehicle loan is lowest with 2.99 while.
This shows that overall customers of Vehicle Loan are less satisfied with the bank as
compared to other loans.
12. Data also shows that gender of the respondent does not have any relationship with
customer satisfaction in this study.
13. Similarly, it was observed that age didn’t have relationship with customer satisfaction in
any of the three cases.
49
CHAPTER SEVEN
CONCLUSION
SUGGESTIONS AND
LIMITATIONS
50
7.1 Conclusion
Based on the data analysis, it is concluded that overall customers are satisfied with the
procedures and rules of loan advancement. Education loan and Housing loan customers
showed mean satisfaction of 3.47and 3.36 respectively. On the other hand, customers who
took Vehicle loans from the Bank showed a slight dissatisfaction with a mean of 2.99 .
It was observed that, in case of Housing loan customers showed dissatisfaction with margin
money and time taken to finalise the loans. Similarly, for Education loan the customers were
dissatisfied with requirement of third party guarantee, time taken to finalise loan and the
processing fee charged by the bank. Overall the customers were least satisfied in Vehicle
loan category.
Therefore, the management of the bank should focus on the vehicle loan category and revisit
their parameters for the loan advancement.
7.2 Suggestions
1. The data analysis shows that the overall mean for satisfaction is the least for Vehicle
loans as compared with Education and Housing loans. Therefore, it is suggested that the
bank should review its terms and conditions for Vehicle loans to attract more customers.
2. The data analysis shows that customers of Education loan are well satisfied with the
margin money required to deposit during repayment of loan while the customers of Housing
and Vehicle loan are not satisfied. So it is suggested that bank should make sure that all the
customers are happy or not.
3. The data shows customers of Vehicle loan are not much happy with Bank’s procedure of
recovery of loan as compared to customers of Housing and Education loan. Therefore, it is
suggested that the bank should review its terms and conditions for Vehicle loan to make the
customers happy.
4. The results of the research shows that the customer satisfaction is least for Education loan
as compared to customers of Housing and Vehicle loan for the moratorium period given by
the bank. So bank should review its terms and conditions for Education loans to attract more
customers.
5. Data reveals that in all the three cases, bank takes time to finalise the loan case so,
customers are not satisfied with this procedure. Therefore, it is necessary that Bank should
improve the time gap of approval of loan case.
6. The data analysis shows that customers are highly dissatisfied with the processing fee
charged by the Bank. Therefore, it is necessary that Bank should not charge excess from the
customers in terms of processing charges.
51
7.3 Limitations
1. The time allocation of six weeks did not allow for larger sample of data.
2. The study is limited to customers of only one branch of J&K Bank (zonal office) at
Panama Chowk, Jammu.
3. Some of the customers were not able to understand or had the time and inclination to fill
up the questionnaire.
52
ANNEXURES
53
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Websites
1. www.bnknetindia/com/banking/finance
2. www.google.com
3. http://www.scribd.com/doc/5434275/indian-banking-sector
4. http://economictimes.indiatimes.com
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6. www.jkbank.com
55
QUESTIONNAIRE
NAME :
OCCUPATION :
BRANCH :
TYPE OF LOAN AVAILED :
PHONE No. :
AGE :
1. I am satisfied with the interest rate on the loan.

1) Strongly Agree 2) Agree 3) Neutral 4) Disagree 5)Strongly Disagree
2. I am satisfied with the margin money required to deposit during repayment of loan
1) Strongly Agree 2) Agree 3) Neutral 4) Disagree 5) Strongly Disagree
3. I am satisfied with the amount of requirements before sanctioning of loan

4. I am satisfied with the Bank’s procedure of checking all the documents

5. I am satisfied with the services of the Bank officials when I approached the Bank for the
Loan
6. I am satisfied with the Bank’s procedure of recovery of loan

7. I am satisfied with the moratorium period given by the Bank

8. I am satisfied by giving third party guarantors of 2 or 3 persons

9. I am satisfied with the current procedure of MCLR (Marginal Cost of Lending Rates)
10. I am satisfied with the time taken by the Bank to finalise the loan case
11. I am satisfied with the processing fee of the Bank

56
TABLE NO. 6 CRITERIA FOR HOUSING LOAN
a)  Individuals having perpetual source of income, who belong to

ELIGIBILITY any of the following categories:
1. Permanent Employees of State /Central Government,
Government / Semi-Government Undertakings &
Autonomous Bodies.
2. Employees of Reputed Companies with a minimum of 3
years of service
3. Professionals, Self Employed Individuals / Businessmen with
a minimum 3 years standing in the current profession.
4. Persons engaged in agricultural and allied activities.
5. Retired Employees of State / Central Government, Public
Sector Undertaking.
Non-Resident Indians are also eligible for financing under the
scheme.
 Others:
In Case of repairs/renovation/alteration/additions to an ancestral
property in the name of either father or mother, who is
dependent on son / daughter, loan can be granted to the parent(s)
by making the son / daughter as co borrower
b)QUANTUM OF 1. For carrying out repairs / renovations to the house / flat:
FINANCE Maximum Rs.25.00 lakhs
2. For carrying out addition / alteration to house / flat No cap on
maximum loan amount (conditions apply)
3. Purchase of land: For buying by the plot maximum Rs. 50.00
Lakh or 60% of the cost of plot (conditions apply)
4. Loan for construction of house for borrowers who have already
availed housing loan for purchase of land (plot): Loan Limit in
such cases shall be fixed after considering the cost of construction
(of house / flat) less by the stipulated margin. However, it shall be
ensured that EMI for the loan for construction of house flat
together with the EMI towards loan already availed for purchase
land / plot and any other credit facility does not exceed the
stipulated deductions.
 Gross deductions inclusive of loan EMI/s (existing as well as
proposed) should not exceed:
o 60% of gross income: For individuals having income from all
sources / taxable income up to Rs. 10.00 lakh p.a.
sources above Rs. 10.00 lakh up to Rs. 30.00 lakh p.a.
57

sources above Rs. 30.00 lakh p.a.
o Note: Estimated income tax / TDS, PF contribution, Premia
towards insurance and other compulsory deductions shall be
included for computing gross deductions.
c) MARGIN  For construction / purchase:
Loan up to 30 Lakh 10%
Loan above Rs. 30 Lakh to 20%

Rs. 75 Lakh
Loan above Rs. 75 Lakh 25%
 For supplementary/repairs/renovation/additions/alterations:
NIL
Up to Rs. 5.00 Lakh
Above Rs. 5.00 Lakh to Rs. 10.00 Lakh 10%
Above 10.00 lakh 15%
d) RATE OF For first/second housing loan

INTEREST
Limit Rate
Up Rs 100.00 Lakh 1 year MCLR
Above Rs. 100.00 Lakh to Rs 1 year MCLR + 20 bps

300.00 lakh
Above Rs. 300.00 Lakh 1 year MCLR + 35 bps
e) SECURITY Upto For any changes in the house / flat

Rs.5lakhs
No collateral security /3rd party guarantee is
required
58
Upto Rs. 10 For any changes in the house in case of government

lakhs employees of J&K and Ladakh
No collateral security /3rd party guarantee is

required
NRI’s- 3rd party guarantee of two resident Indians of sufficient means

to cover the liability apart from the other securities shall be obtained.
TABLE NO. 7 CRITERIA FOR EDUCATION LOAN
a) QUANTUM  In India : Rs 10.00 Lakhs ( Maximum)

OF FINANCE  Abroad : Rs 20.00 Lakhs ( Maximum)
b) MARGIN  Upto Rs 4 lakhs : Nil
 Above Rs 4 lakhs :
Studies in India - 5%
Studies abroad - 15%
c) REPAYMENT  Repayment shall start after Repayment holiday/Moratorium period, which
shall be as under :
Course period + 1 year
 The accrued interest during the repayment holiday period to be added to the
principal and repayment in Equated Monthly Installments (EMI) fixed.
d) RATE OF
INTEREST:
Amount of Education Covered Interest Rate Effective Interest
Loan under Credit Rate
Guarantee
59
Scheme
Up to 7.50 Lakh YES Fixed*/ Floating Applicable

MCLR + 2.00%
Up to 7.50 Lakh No Fixed*/ Floating Applicable

MCLR + 1.50%
Above 7.50 Lakh to NA Fixed*/ Floating Applicable

10.00 Lakh MCLR + 1.50%
Above 10.00 Lakh to NA Fixed* Applicable

20.00 Lakh MCLR + 2.50%
Above 10.00 Lakh to NA Floating Applicable

20.00 Lakh MCLR + 2.25%
Above 20.00 Lakh NA Fixed* Applicable

MCLR + 3.00%
Above 20.00 Lakh NA Floating Applicable

MCLR + 2.75%
e) PROCESSING  For studies in India - Nil.

CHAGES  For Studies abroad –Processing fee (upfront) @ 1% of the loan amount
sanctioned with a maximum of Rs.10,000 The processing fee would
however, be refunded
f) SECURITY
Up to No Security
4.00 lakhs Parents to be joint borrower(s).
Above 4 Besides the parent(s) executing the documents as joint

lakhs and borrower(s), collateral security in the form of third party
up to guarantee of two persons will be taken.
7.5 No third party guarantee for education loans granted under Credit
Lakh.* Guarantee Fund Scheme. Guarantee Fee to be borne by the bank.
Above 7. Parent(s) to be joint borrower(s)

5 Lakh.* Tangible collateral security having fair market value of not less
60
than 100% of sanctioned limit and interest payable (capitalized)

during moratorium, along with the assignment of future income
of the student for payment of instalments.
61
TABLE NO.8 CRITERIA OF VEHICLE LOAN
a) ELIGIBILITY a. Permanent Employees of State / Central Government,

AND AGE Government / Semi-Government Undertakings &
Autonomous Bodies.
b. Employees of Private Limited Companies, Private
Organizations, Reputed Establishments & Employees on
contractual basis with Central/State Government,
Government/ Semi-Government Undertakings& Autonomous
bodies (in current contractual job for a period not less than I
year and the remaining contract period is longer than the
chosen repayment period)
Eligibility Criteria: (For a & b)
 Minimum age of Applicant: 21 years.

 Maximum age of Applicant at loan maturity: 60 years or age
of retirement whichever is earlier.
 Minimum employment: The applicant must have been in
current employment for a period of not less than 1 year.
 Minimum Gross Annual Income: 3.00 Lakh
c. Professionals, Self Employed Individuals & Proprietorship
Concerns
d. Persons engaged in agricultural and allied activities
Eligibility Criteria: (For c & d)
 Minimum age of Applicant: 21 years

 Maximum age of Applicant at loan maturity: 70years
 Experience: At least 3 years in business.
e. Retired Employees of State / Central Government, Public
Sector Undertaking.
f. Joint borrowers are also eligible.
Eligibility Criteria: (For e & f)
 Maximum age of Applicant at loan maturity: 70 years

b) QUANTUM i) for purchase of car at ex-showroom prices :
OF FINANCE
36 months net monthly salary of the applicant or 3 times net annual
income. However, in case of employees of private organizations,
employees on contract basis and pensioners, the maximum finance
shall be limited to24 months net monthly salary or 2 times net
annual income.
Gross deductions inclusive of loan EMI/s (existing as well as

62
proposed) should not exceed 60% of gross income.
In case of married individuals, certified income of spouse can also

be considered provided the spouse is a co-borrower.
In case of Joint borrowers, it is to be ensured that at least one of the

joint borrower(s) is able to repay the loan along with interest up to
the maximum prescribed age of 60 / 70 years.
ii) for purchase of car at on-road prices :
The “One time Registration Charges and Insurance premium for

first year (Optional)” shall be financed as part of the total loan to be
provided subject to maximum permissible amount of limit of finance
for which a borrower is eligible under the relevant clause of this
scheme.
The loan amount reflected in the loan account shall be inclusive of

loan amount granted for Registration and Insurance.
c) MARGIN MARGIN MONEY PAYMENT THROUGH POS:

MONEY In addition to the payment / deposit of margin through the existing
Procedure / Channels, Margin Money / booking amount can be paid
directly to the dealer through POS terminal installed at dealer outlets
across India. The facility shall not be restricted to J&K Bank POS
Machines. The dealer should provide a valid receipt for margin /
advance / booking amount received. Deposit of Margin money by
POS terminal will not entail waiver of processing charges
 10% of Ex-Showroom / On-Road price, as applicable, for
permanent employees of State and Central Government,
Government Undertakings & Autonomous bodies drawing
salary through our Bank and where letter of undertaking
from employer is available.
 10% of Ex-Showroom/ On-Road price, as applicable, for
Platinum / Gold Current Account holders.
 15% of Ex-Show room/ On-Road price, as applicable, for all
the others
d) REPAYMENT Flexible repayment options ranging from 12 to 84 months

PERIOD in equated monthly installments. In case of “On –Road Prices"
option, repayment schedule shall be fixed for the entire loan amount
which shall include Ex-Showroom Price plus One Time
Registration Charges plus Insurance Premium (first year only), as
applicable.
e) RATE OF Fixed-11.25 % per annum with monthly rests.

INTEREST Floating-B.R + 1.00 % per annum with monthly rests.
63
OR
As prescribed by A&AP Division, Corporate Headquarters from

time to time.
A rebate of 0.25% in the interest rate may be allowed to women

borrowers under the scheme.
f) PROCESSING
FEE 0.50% of loan amount subject to a minimum of 500.00

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1

INSTITUTE OF MANAGEMENT AND SCIENCES

“A STUDY ON FINANCING OF RETAI LOANS AND CUSTOMER

UNDER THE GUIDANCE OF

PROJECT SUPERVISOR PROJECT GUIDE

Finally I express my indebtedness to all who have directly or indirectly contributed to

Student’s signature Director’s

Project guide’s signature

S.No CHAPTERS TITLE PAGE No.

6 CHAPTER 1 Introduction 2-6

7 CHAPTER 2 Company Profile 7-14

8 CHAPTER 3 Review of Literature 15-18

9 CHAPTER 4 Research Methodology 19-24

10 CHAPTER 5 Data Analysis & Interpretation 25-41

11 CHAPTER 6 Findings and Results 42-43

12 CHAPTER 7 Conclusion , Suggestions & 44-45

Process of customer satisfaction

1.2 THE BASIC NEEDS OF CUSTOMERS

1.3 FACTORS THAT INFLUENCE CUSTOMER SATISFACTION

1.4 MEASURES OF CUSTOMER SATISFACTION

1.5 CUSTOMER SATISFACTION IN BANKING

2.1 UNIQUE CHARACTERSTICS & SERVICES

2.2 PRODUCTS AND SERVICES OFFERED BY J&K BANK

Third Party Services

Cash Management services

2.3 BRAND IDENTITY

Green Signifies growth and Renewal

Blue conveys Stability and Unity

Red represents Energy and Power

2.4 CUSTOMER SERVICES

2.5 CSR ASPECT OF BANK

1. Eradicating hunger, poverty and malnutrition promoting healthcare including

the Central Government for rejuvenation of river Ganga;

2.6 Policy Initiatives/ Objectives for FY 2019-2020

~ Online financing details

2.7 THRUST AREAS OF BANK

2.8 SWOT ANALYSIS OF J&K BANK

Al-Hudhaif, S. A. (2011), highlights the critical success factors for implementation of

Research methodology is the specific procedures or techniques used to identify, select,

4.1 OBJECTIVES OF STUDY

4.2 RESEARCH DESIGN

4.3 SAMPLING PLAN

1. Probability Sampling Methods

There are 4 types of probability sampling technique:

 Stratified Random Sampling: Stratified Random sampling is a method where the

2. Non-probability Sampling Methods

There are 4 types of non-probability sampling

 Judgmental or Purposive Sampling: In judgemental or purposive sampling, the sample

 Snowball sampling: Snowball sampling is a sampling method that is used in studies

example, it will be extremely challenging to survey shelterless people or illegal

 Quota sampling: In Quota sampling, selection of members in this sampling technique

4.4 SAMPLE SIZE

4.5 DATA Collection Methods

4.6 QUESTIONNAIRE DESIGN

A questionnaire is a research instrument consisting of a series of questions and other

4.7 Analysis Tools

Research Objective 1: Study of Financing Procedure of Housing,

Research Objective 2 : Study of Satisfaction level of Customers towards

Respondents age are divided into 4 groups

Group I (18 – 30) years

Group II (30 – 40) years

Group III (40 -50) years